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Your World With Neil Cavuto

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Fema 8, Washington 5, Us 5, Medicare 4, Ho 4, Europe 4, Sandy 4, Boehner 3, Citi 3, Katrina 3, Cuomo 3, Italy 2, California 2, New York 2, Greece 2, Sam 2, Unitedhealthcare Insurance Company 2, Obama 2, Humana 2, Aarp 2,
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  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    December 3, 2012
    1:00 - 2:00pm PST  

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just two aleve can keep pain away all day. back to the news. >>shepard: in "studio b," we i might know who is responsible for the weapons. the dow started out green and now it in the red. neil cavuto is here for context and perspective. >>neil: see this governor? see this speaker? see this capitol? they are all coming together right now. welcome, everyone, show me the money. new york governor cuomo meeting as we speak with house speaker boehner pushing for $42 billion in federal aid after super storm sandy but will the residents see it in the "wall street journal" reporter says if katrina is an example, don't count on it.
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of $142 billion in federal aid headed for that, only $40 billion made it directly to victims from fema. that is incredible. not right. >>guest: it is not right. when i saw that, cuomo is coming to washington, and you showed the capitol you should have dollar bills coming out of the window because when the governors come to washington they want money with their palms up. that is what governor cuomo wants. he wants the federal government to write a big check to the state. we found with katrina, of the $140 billion, according to independent government auditors, there was rampant corruption and fraud and no bid contracts that went to cronies and we estimate that somewhere between 20 percent to 25 percent to 30 percent of the money was wasted on fraudulent contracts. it didn't helps victims. a lot of people got rich but it wasn't the people who lost their
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homes. >>neil: you can see money for a variety of purposes, the money coming in, helping the victims, helping sandy victims now, but it goes through a variety of nefarious purposes and could fill a hole in the budget. where is the backup to look at making sure this money is going for the pups to which it is intended? >>guest: this is the frustration as a taxpayer watch dog. going back to katrina we did not find out about a lot of this until a year or two years later and the american people had moved on and congress moved on so we didn't eleven any lessons. now we are about to make the same mistakes with respect to the clean up of sandy that we made when we wasted tens of millions with katrina. i am radical on this. my feeling is if we are going to help the victims, give the money to the victims. or to the salvation army or the red cross or the kinds of institutions we know are providing the real help. do not give it to the politics
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and the state. that is a middle class taking away 10 percent or 20 percent of the money. >>neil: who gave charlie for the money, i an herery of charlie, in had case, sam, uncle sam. how close to the $42 billion will the governor get or a comparable sum that the governors of new jersey and connecticut are looking at? >>guest: they will get almost all of it. when does congress say know to any of the people? our hearts bleed for the people who lost their homes to the terrible storm so you have the victims, they will put them on tv and say you got to give us the hundred and that brings me to a second point. if we are going to give, it will probably be well over $50 billion, why not have a policy when we have a crisis like this, and a natural emergency, cut other government programs c do we always have this unlimited credit card to increase the amount of the debt? that is why it gets to the point where geithner's proposal to
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wipe away the debt ceiling altogether is such a dangerous idea. it is like giving congress unlimited credit card where they can borrow for anything they want to spend money on. >>neil: i asked pennsylvania congressman after sandy, and said we n $12 billion to fema's budget, add it right now, and his part was speaking but i don't think his head was. >>guest: not compared to what happened with katrina. even to this day there are areas of new orleans that have not been cleaned up and $140 billion is a lost money but this is half of that but sandy was half the storm of katrina. i have skepticism this will help the people that we, you have shown on the show, the people who have lost their homes and businesses. i am skeptical that they will see were of the money. >>neil: you are not alone. my guest wants did know where the money is going, as well, and is certainly not seeing any of it and has been holed up in
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hotels since sandy hit a month ago. >>guest: yes. >>neil: how do you support yourself? >>guest: that is a really good question. i wish i have an 18. >>neil: who is paying the hotel bills? >>guest: fema is. i am grateful. in a better position now than i was a month ago or when i was last here where i was night to night trying to figure out where i was saying because it was such a sudden shock. >>neil: and the added problem you have a dog and you wanted the dog with you. >>guest: yes. >>neil: is the dog with i? >>guest: yes, i am staying at the hampton inn and they have been very nice. they have been wonderful. >>neil: that guy is legendary for not gouging anyone. >> you have her the sums being mentioned right now, christina, first of all, i agree a lot of it will come through, where does it have to go?
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you are out there and you know what it is like. where would you put it? >>guest: i am in agreement with what he said, give it directly to the victims. they know who has been affected by the hurricane. why is it an issue to distribute some of the funds? that is a lot money. i have not seen a dime of it. my neighbors have not seen it. and charities are popping up, make monetary donations, where is the money going? i inquired on facebook, responded to someone's post and said, excuse me, where, exactly, are the funds going? for "relief." i said are you being relieved? i am not getting any. >>neil: intentions and hearts are good but the heart gets ahead of the head and is bamboozled. is that what is going on? >>guest: it is great for people to have good intentions.
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a lot of people reached tout me and my response to them was reach out to someone that you know directly that was affected by the storm and see if this is anyway for you to offer them assistance rather than going through the red cross. that sounds terrible but it is true. how much money did the red cross raise? i got a juice box. a juice box. it was not a $32 million juice box. >>neil: the argument for fema to be involved they have the infrastructure and the manpower to do what they are doing and to provide the things you need and anyone smaller could not do that. >>guest: i think that fema needs to reevaluate their national training program to start conducting. i would be willing to help them do that. >>neil: you are out there
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right now. who has been the most helpful to you and folks? >>guest: the community. and people across the country. people that is reached tout me and said is there something i can do. >>neil: like what? >>guest: they offered to take the dog. short-term. they offer, do you need clothing? is there something i can hope you look. are you looking for a place? can i help you look for a place? is there anything, can i write you a check? >>neil: when you hear people say, if fema goes there is no one to swap out that role, you say what? >>guest: i think the people in the country are the ones that are standing up more for the victims. listen, without fema i would be in a lot worse position and for that i am grateful. that is the reality. could it have been better? absolutely. what i received was nominal in comparison to what i lost. but it is better than nothing. >>neil: fema is okay?
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>>guest: i mean, listen, when you have lost everything, any help is happy to be received. >>neil: and we have the man who led the 9/11 victims compensation fund and the b.p. oil spill under to make sure the right people got the right amount of money for the right cause, the right reason and no one bamboozled anyone and we will hear what he has to say and how he goes about compensating folks at 8:00 p.m. on fox business network. >> forget the political grinches in washington, will the striking pork workers in california be the real threat to "whoville."
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>>neil: and if republicans thought there was wiggle room in the white house tax position no less than treasury secretary geithner put that to rest. >> rates and revenues, tax rates, tax rates, tax rates. higher rates. rates go up. tax rate increases. higher rates. rates will we have to go you. rating rates. tax rates going up. >>neil: we will have a quiz. what was he saying? a lot? that is the administration's way saying tax rates or take a hike. >>guest: the president is in an ideological position and geithner who is famous for not paying taxes is perfectly happy to carry white house water on capitol hill and on the tv shows and this, really; a big fight.
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>>neil: but the first time anyone in the administration was so unequivocal, at the president's press conference he let up, if you can get me a like amount in revenue from limiting, i am paraphrasing here, not accurately, he could be open, but, now, this is the treasury secretary, the chief negotiators saying it is rates or bust. >>guest: presumably the white house communications petroleum made -- people made an decision to emphasize rates. tax rates. tax rates. tax rates, tax rates. like tourettes. that is all they want. >>neil: member the middle ground they rumored about last week, maybe not 39.6 percent the top rate, but mid-30's but regardless you think the rate will change. >>guest: i am pessimistic short run and long run.
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there is in reason why they should go up but i think they will. we need to just limit the growth of spending to 2.5 percent a year on average and the fight is about taxes going up so that spending can go up and that is a game leapfrog. we end up with more debt and a weaker economy. the road map is greece, italy, spain, all over europe but the president thinks you can tax-and-spend your way to prosperity. >>neil: what the administration throws back on the issue is take a look at italy and greece, austerity has worked. you say what? >>guest: they have a strange definition. alwaysst either to them means higher taxes in europe and the united states austerity means less spending. i am in favor of the right definition of austerity. the balkan countries got out of the mess and now they are doing well economically because they cut, not just cut spending in the washington sense of increasing it at a slower rate
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they spent less one year after the other and now they are out of the trouble. if you understand the right definition of austerity is the way to go, the problem is in most of europe it means higher taxes, obama wants to give us the bad part of europe, without the good part. >>neil: thank you very much. they are not cutting anything. just slowing the growth. rebound and former president bill clinton hitting the links. this is a photo from last year. what we don't know what was said teen them this year my guest homes the former president was critiquing more than just his successor's swing. art laffer was the top reagan economic adviser and you voted twice for bill clinton because his prosecutor mix of taxes. explain that? >>guest: yes i sure did. but for the raise hikes at top end, he cut taxes on the working people between ages of 65 and
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72. he cut taxes on trade and products. he cut government spending as a share g.d.p. dramatically and he cut the capital gains tax rate and butt in welfare reform. what do you want from a president that bill clinton did not deliver? he was a great president. >>neil: the investment taxes was that concurrent with what was going on in the income tax hike front? >>guest: no. it was not. the capital gains tax reduction which he dropped the high of the race from 28 percent to 20 percent but what he really did that was amazing, he exempted owner occupied homes from ever paying capital gains taxes again, $250,000 for a couple every two years and $125,000 for an individual every two years which is amazing if you think about it. a huge deal. >>neil: he gave you lemon and your sugar. he didn't just pile on the onerous tax hikes he would balance it out with something
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appealing that would please wall street which it did, and pleased we republicans, which, next, it did. do you see that here? any of that here? >>guest: no. no, i don't. what i hoped the republicans do is extend all the tax cuts but those at the top end. and then have a separate bill extending those four and if the administration won't go along with that, you just have a stalemate and i would love to see a stalemate but i want to make sure all the tax cuts that can be extended are extended and make sure that happens. then after that you can fight over the four but why want to do a grand compromise because, frankly, i don't think we will be better because of a compromise. >>neil: so a bad deal is worse than no deal. >>guest: is it ever. a bad deal would be very detrimental. what they are trying to do now is get, capping all the other things and increasing the stimulus package, and the tax rates on the upper income, i
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don't know how you can avoid it to be honest. they control the senate and the white house. but we should extend everything we can and tight over-the-top rate. necessity cannot go higher without the concurrence of the house of representatives. >>neil: but we know it is not returning to the clinton tax rates. as you pointed out between the sur taxes on the wealthy, medicare and everything else, you are at a were higher rate? >>guest: of course, this is higher. yes. and you are talking about much higher spending. remember, that government spending is taxation. these guys don't create resources. they redistribute the resources. what they have done here with this, they have had a huge increase in taxes which is why we have the very bad who we have today. it is, unfortunately, we are never going to bring the economy back unless we get control of the spending and get toward the low rate flat tax. can you not do it. >>neil: i don't think either
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side has offered enough on spending. i think it is baked into the cake it is the result of election and elections have consequences. but on the wealthy i think the rates go up but with the latest proposal, why see enough to adhere to what was the debt commission in cuts, is too little too late, but, too little, more to the point. >>guest: it is too little. what really has to happen here, you are not going to get a good answer in the next two years. you have the groups going at it and they are not going to get it. we have do wait-and-see what happens in 2014 and there are 33 senate seats up, the democrats have 20, the republicans have 13, there are thine freshman democratic senators, see what happens. if it happened that way in 2010, if we take the senate, obama will then see the light. if you hold his feet to the fire they will feel the heat and see the light. i hope that is how it happens. >>neil: we will see what happens.
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♪ ♪ [ male announcer ] while you're getting ready for the holidays, we're getting ready for you. tis the season. for food, for family, and now, something extra -- for you. >>neil: a strike that ships down most of the los angeles and long beach port complex for a lot of crucial ships entering the 7th day. it is a serious cause for alarm as in "santa claus." the longer it stays on the ship the less likely it lands on
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santa's sleigh. explain this. >>guest: right our biggest concern is we have ports shut down. a majority of the holiday merchandise has arrived in the united states right now there is the last big push to get the holiday merchandise to the stores and they are stuck on ships at sea. >>neil: if you don't follow this stuff, if this age of time inventory, retailers do not stack a lost stuff on their shelves, to save money and, also, to respond quickly to what is selling hot and what is not and a lot of this stuff on the ships is pretty hot, what could be affected for people. >>guest: it can be everything from wearing apparel, and consumer electronics, and foot wear, and home goods and folks are actually looking at bringing in spring merchandise so you are looking at patio furniture. >>neil: what would happen to the prices of those goods, then, if they are in short supply or zero supply.
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>>guest: well, in short supply, hoping the prices won't go up, but, consumers need to go out and buy the goods now just in case they are not on the shelfs in a couple of weeks. >>neil: without getting into the details of the strike, a lot of union strikers are very upset that if one of these goes they are not being replaced and this is standard practice. this has been a big sticking point. any middle ground on that or does it remain? >>guest: not sure. as far as we know the two sides remaining at the table and are negotiating but the pickets and the strikes are continuing and the issues need to be worked out by both sides. at this point, this negotiation has been going on for over two years. we think there is a need for federal mediation to come to an agreement. >>neil: do you have a response from the president?
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s a of today we do not have a response from the white house. >>neil: hopefully this is all resolved. this is a letter that has been urged to have mediation involved. >> the president is about to public us off the cliff, that one thing for the republicans to say that but for a big named democrat to say that? that is after this. ecause your y wants that pink castle thing. and you realldon't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it findone, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok. [ male announcer ] now all youeed is a magic carriage. citi price rewind. start saving at citi.com/pricerewind.
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>>neil: the president's tax tactics are upsetting the republicans but a democratic caucus member sees it as time for the president to step up, connecticut senator joe lieberman, and on his way out he is creating a big fuss. senator, good to have you. >>guest: good to back to create a little fuss. >>neil: senator, what is it you are having a problem with here? the president has to step up or play a more active role or delegate that to the treasury secretary? >>guest: certainly a lot of this is going to be done at the staff level. but, ultimately, this is going to require an agreement between president obama, speaker boehner, senator mcconnell, senator harry reid and leader pelosi and in some sense it is going to be the two main players are president obama and speaker
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boehner. my concern has been this looks like campaign time and the election wasn't over and we didn't have the prospect of going over the fiscal cliff. today the house republicans in a big development put out a plan and i am sure it is not on its face acceptable to the president and the democrats here but interestingly it has the same total number of savings and tax revenues as the president does over 10 years, $2.2 trillion. that is a lot more spending and entitlement reform in the president plan -- republican land and the democratic plan but now they can fill things in and the president has to be at the table to close the deal. he has the mandate to do it. >>neil: part of the mandate means both sides should give a little. obviously the republican plan
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has a debt commission feel to it but beside that i am wondering if it and tough and i know you are leaving the senate and i have always said, and i am not blowing you smoke you are one who tries to find areas of agreement and move the ball forward and we can be dogmatic all we want but in the end, you have reminded me, senator, it is about getting things done and right now washington is the hatfields and the mccoys and never the two decide to meet. they don't meet. so, are you worried that environment makes things so dicey that no deal is done and if it is done, it it is a bad d. >>guest: i am worried. the so-called fiscal cliff was put in law because it was stuff that would be so unacceptable congress would never let it happen, enormous tax increases, grotesque cuts in spending but here we, it is in the law. congress does nothing which congress is good at doing and go
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over the cliff and some want to see that happen because then the crisis will generate the kind of bipartisan agreement we need but that is irresponsible. >>neil: it is looking more likely. then who picks up the pieces? >>guest: the country suffers. i don't think anyone gains politically. you know that almost everyone here in both parties will tell you if you talk to them privately, this ends with entitlement reform. not cutting programs like medicare but slowing down the growth in the programs because they are the big drivers of the deficit and raising more out of the revenue, out of the tax system. whether you call iterates or reform over whatever you call it, and each those touches the third rail of the parties, we have to get together and say, basically, we have to do something right for the country.
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if we had a bipartisan, avoid the fiscal cliff and pay down the debt type of agreement it would be the best thing that could happen. the market would go up and we would be liking like our future was brighter than a lot of americans think it is today. >>neil: are you smoking anything at all? >>guest: drinking a little coffee. >>neil: quickly, senator, i know you have to go the congressional black caucus has come out with a statement saying, really, leave entitlements alone and focus on hiking taxes. that is the gist of the statement. what do you think of that? >>guest: it does not do it. hiring some people -- higher income people pay a disproportional share of the taxes. and they should. but if you bring the rates back
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to the rate before president bush it doesnot raise enough to get us to ball. you have to curb the increase in spending on the entitlement programs. if you don't do that, and they are the biggest driver of debt, so, the american people, i think, are ready for us to do something that looks according to conventional politics like a bad idea politically, but, actually, i think the public would be happy if we told them the truth and said we were doing this for the good of the country and i still thing we have a chance of doing that before the end the year and i would like to be part of it. >>neil: thank yous senator, i hope i get a chance to talk to you again. >> now, pat caddell's read on that, finding middle ground. >>guest: you will not find middle ground until the republicans stop retreating like they are in disarray. the white house which is pursuing them, under the belief that they can roll them for everything.
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what they want is much more taxes. you cited the black caucus. there are a lot of democrats who want do go over theally cliff because they think they can blame republicans and get the tax revenues. >>neil: will that work? the argument is that hurt gingrich. >>guest: in august of 2011 the republicans got the daylights knocked out them but the president lost, remember, the anthony weiner special district, a race in las vegas. here is the point. the republicans desperately need to gain have a game game changer and the big one is the president's overreach like roosevelt on the court packing plan, i wrote a piece today which is, my god, they have given you their plank. he is so arrogant saying only he will decide what he will set the debt limit so he can continue to
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spend unlimited amount of money. republicans should stop everything, right now, and say, wait, let's have a fight in this country, have a vote if the house, and force a vote in the senate and see how many democrats. lieberman will not go along with it, and mark pryor, will say, you do fought have unilateral power. if they change the terms of the debate, it will change the way, and --. >>neil: so they have to draw a backbone. i think a deal is looking more doubtful. so what will happen? >>guest: what happens is country will say, to hell with both of you. the country is going to be furious. the fact is, our political system is dysfunctional. you will see a lot of other alternatives emerge. the problem for the republicans is they have had their clocks cleaned in two years of negotiation, and obama, the difference between 1937 and the
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court packing plan, roosevelt was a god ringing 61 percent of the tote and president obama got 51 percent barely, an while romy was incompetent at campaigning. they show no imagination. if they did they can turn this debate over. >>neil: thank you, patrick who saw all of this covering on election night. if you missed it, i don't know what to tell you, you should be ashameed. how about adding more days off school? some districts are trying it and the taxpayers may not like the cost of it. i love to eat. i love hanging out with my friends.
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>>neil: listen up kids, school days will get longer. a lot longer. several public school districts in the united states starting next year are looking at adding 300 more hours to their school calendar years. that is like more than a month more of school. the goal is to make schools more competitive and at least one education watcher is hearing all of this and worrying about the costly fixes and wondering, if we are just compounding the problem. our guest is from the education action group much the longer you are in school the more you are inclined to remember what you learn, the smarter you get, the more competitive our kids get and on and on. >>guest: that seems good on its face but you have this notion that quantity is better than quality. what states need to look at is
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quality. the type of instructor, are they effective? ineffective? the trouble is, we have fought been able to determine that because we don't have a good evaluation system for teachers and unions are blocking that and protecting ineffective teachers. >> there is no guarantee that the districts that the effective teachers will teach more? >>guest: no, if you have ineffective teacher it doesn't matter how long your kid in there. what you need to focus is on teacher quality. what makes an effective teacher? that is what they should focus on. >>neil: leak you i travel a bit and around the world, we are more the exception, and there are schools in asia and south korea, germany, where the school is all year and germany towns
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out a lot of pretty neat engineers and, of course, much of asia turns out a lost great technology types and the rest, so they are getting bang for the education buck. your fear is it would not be copied here? >>guest: no. the trouble is, you have other countries. in finland, they focus on only putting the proper people to have the highest success in the classroom or potential for success in the classroom in education schools. so they don't just let anyone in a school education. >>neil: they look at promising students. you could be a late bloomer and get passed up. >>guest: that is possible. but, instead, what they are doing is scrutinizing people prior to getting into the system. what we do in america, unfortunately, according to international studies, we have students who are graduating to become teachers are in the bottom third of their graduating
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class. so we are putting people in choose rooms that are not equipped with skills. they do not have the ability to handle a classroom. so what we need to focus on is quality rather than quantity difficult. >>neil: thank you very much. you think airlines could not possibly charge you for anything else? prepare to be royally beefed. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.
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>>neil: passenger fees will take flight, again, with airlines report through talking of new ways to charge flying public more. and our watchdogs and how people will have to pay up and where. >>guest: airlines are encouraged by consultants, fee
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consultants to package fees in advance of flight. you may be encouraged to buy packages of food or insurance based on previous behavior on the airlines' site. you go on any website and you see an ad for something you searched for a week ago, so the airlines know your behavior. if you buy insurance. so they may offer the insurance upfront and we will see some new fees that we have never imagined before, light using a credit card, one airline is very profitable, good for them, they are charging, giving you a discount if you pay in cash versus using a credit card. >>neil: so, in the end, with some of the new restrictions and clarifications, that is what the airlines are calling it, you could pay a lot more in fees. how do you avoid some of the most obvious fees? if you print out a boarding pass
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you do that from home, is that the idea? >>guest: spirit airlines, now they are charging you to print out a boarding pass at the airport. ryan air in the u.k. charges $60 to print out a boarding pass at the airport. what we are going to see is more airlines enforcing do it yourself procedures. for example, printing your boarding pass yourself at the airport you lug in your destination, you get the boarding pass, put it on director bag and bring it to the conveyor belt and you will see do it yourself at the jet way and you will scan your boarding pass to get on to the plane and what we will see is --. >>neil: what is next, the the passengers will fly the plane? >> you will pay to talk to an agent. that is where it is going.
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you pay to talk to an agent on phone to make a reservation. they will charge you to deal with that. the airlines are finally making money, but, they have been behind the eight ball for so many years and they are not playing on the same playing field that autos or banking. for example. delta, we just read, wants for buy 49 percent of virgin atlantic. why not buy 100 percent? >>neil: it is a mess. we are getting a response from the white house on the republican letter to find a middle ground here and entertain cuts that are still about what the administration is, over 10 years, and this is from the white house communications director, the republican letter does not meet the test of balance. going nowhere, fast.
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i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan.
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the chase. remember, nasty e-mails about interrupting the guests too much? too many to be ignored apparently, especially for the legion of loyal cath cavit fans who wouldn't have the personal attacks. jim in florida -- tell them to pound salt. you're perfect. alice via yahoo -- do not listen to those oblivious msnbc supporters. you present a clear and precise account of what is happening in your world today. tony in long island, new york -- your critics are mostly right. you are ugly. you are pushy. and you do look like that kid everyone even wimps beat up in high school. you still the best. poundage and all. this is a support e-mail from my staff? my staff attempting to balance the e-mail selection? these are coming from my staff. bronx -- there is no nice way to say you are hideous and arrogant jerk but there are nicer ways to say it. like instead of calling you
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ass, you're an affable ass. that sounds better. much better, clar ab. and then -- jim e-mailed -- you do interrupt everyone on your show. i won't call you names because i still love you. i love you, jim and i don't know who you are. mary in alaska, quit showing the mean e-mails. most of us love, respect and admire you. lin e-mails -- i like you. you have tried to improve on interrupting and now to apologize when you interrupt. you deserve credit. give us credit. i will say that you interrupt the liberals and conservatives equally. good for them.
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al -- how do they find fault with you -- they must be watching the show. funny. isn't it? they must be wanting a no spin attitude that fox is famous for. keep on interrupting them. thank you, mike. from california -- of all the male anchors at fox, you are perfect. but none is worse than bill o'reilly. don't change. you tell that to bill. evan via alo -- so true, yvonne.
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go with my hypnotic handsome flow. so true. for haters out there that suggested my boss can me, al in cincinnati with a warning to the fellow ohioan, ronaler. 87-year-old born again great grandmother who arranges her afternoon to watch your show. bill lost out at 8:00 p.m. he can't say it because it would make bill jealous. and then this -- i just found out the other anchors here are paid so one step at a time. it won't hold off on getting things flight 2012. 2013. all kidding aside, this is an issue to

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